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Neo Wave Patterns 206
Neo Wave Patterns 206
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Page
Diametric Formations
Neutral Triangles (wave-c
longest)
Extracting Triangles
3rd Extension Terminals
5th Failure Terminals
Copyright 1995 by Glenn Neely
Ritz-Carlton ASPEN
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Diametric Formations
I experienced my first
Diametric formation in
1991. What started out
looking like a
Contracting Triangle,
stopped behaving like
one when wave-e
became larger than
wave-d. If wave-e had
moved quickly enough
and far enough, I could
have concluded the
pattern as a Zigzag from
the low in 1991. But, the
problem is that wave-e
did not move quickly
enough out of the
congestion to indicate
anything critical had
concluded. That is when
I started to realize that a
new wave phenomenon
was unfolding. It was
simply a process of
elimination.
A Diametric Formation
generally resembles the
shape of a Bow Tie.
E
A
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D
B
E
A
C
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Extracting Triangles
B
D
Notice that the upwaves
(designated by up arrows)
continuously contract from
left to right - a contracting
bias - while the down arrows
show an expanding bias.
NEoWave, Inc., 65 Enterprise, Aliso Viejo, CA 92656 (800) 636-9283
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x3
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These patterns basically
mimic 3rd Extension
Impulse patterns, except
waves-2 and 4 overlap
and the internal structure
of each move is
corrective, not
Impulsive.
Fibonacci Resistance
Established by larger
degree formations
4
2
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Spike High
Spike Low
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D
Neutral Triangles are
some of the calmest,
most consistently
behaving patterns under
NEoWave Theory. If
the markets behavior
and style is not changing
much, even if the market
is covering a lot of price
and time territory, that is
the environment of a
Neutral Triangle.
E
A
C
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Extracting Triangles
Each successive decline is smaller
in price. Each successive rally is
larger in price. This is the type of
behavior that characterizes an
Extracting Triangle. The most
important trait of this pattern
appears to be that wave-D is always
larger than wave-C and is usually
the most complicated wave in the
pattern from a visual standpoint.
D
B
A
C
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Fibonacci Resistance
Established by larger
degree formations
5
1
4
2
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3
This is among the
strangest and most
difficult to decipher
patterns under
NEoWave Theory.
They are difficult to be
sure of even AFTER
they have completed.
The pattern is so warped
by the extreme
differences in size
between waves 2 & 4
that it is frequently only
possible to identify them
well after their
conclusion.
5
1
2
Notice the obvious differences
between waves-2 and 4 in
price/time and complexity.
This is a critical feature of 5th
Failure Terminals.
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Wave-C (or 3)
has not taken
3
enough time. It or
should be about C
half of A+B (1+2)
1
or
A
2
or
B
Copyright 1995 by Glenn Neely
Ritz-Carlton ASPEN
- Day 1
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NEoWave Patterns
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NEoWave Patterns
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NEoWave Patterns
380
370
360
350
340
330
320
310
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290
1
11
21
31
41
51
61
71
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NEoWave Patterns
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41
61
81
101
121
141
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370
360
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D
B
330
320
310
300
290
1
11
21
31
41
51
61
71
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Diametric Formation
G
21
41
61
81
101
121
141
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Neutral Triangle
E
A
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